Utah May Raise State USF Surcharge
With its universal service fund quickly depleting, the Utah Public Service Commission tentatively decided to increase its USF surcharge to 1.65 percent from 1 percent of billed intrastate retail rates, said a notice in Friday's Utah State Bulletin. The rule…
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change may become effective Aug. 22, though the PSC could change its decision after comments are filed Aug. 15. If no change is made, the rate would increase Oct. 1, the Bulletin said. The new rate is “intended to function as an interim solution to address the current funding deficiency in the least disruptive way possible, and to allow time for the Utah Legislature to consider other changes to the fund,” it said. The Utah Division of Public Utilities last month urged a revamp of the state USF contribution method, saying without a change, the fund balance could dip $3 million this year and run out completely by early 2017 (see 1606210035). The DPU had recommended moving to a charge of 32 cents per line. But a Legislature committee “expressed interested in more fundamental changes to the Utah Universal Service Fund,” the State Bulletin said. Revenue from contributions to state USFs has declined in multiple jurisdictions, our survey has found (see 1607010010).